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1. Responsibility

It’s a two-way street between shareholders and directors: if directors are in the job on the say-so of shareholders, they are answerable to those shareholders. Remember this. 

A board is responsible for fulfilling shareholders’ wishes. That involves shepherding a company away from risk, around challenges, and towards success while staying true to its mission, respecting the law of the land, and the sensitivities of the politics around them. It’s a difficult job, but this is what responsibility truly means. 

One of the board’s most important functions is to select a CEO who will enable the company and its workers to achieve their full potential.

2. Accountability

No matter what decision a board takes, they should be able to back it up. 

Important corporate decisions will inevitably lead to questions, and this isn’t a bad thing – merely a sign of engagement and diligence.

“Why did you appoint this CEO over other candidates? Why did you select this as a top priority? Why are we focusing corporate resources on ESG?” 

As a board member, expect a constant flow of questions like this. When you get them, your job is to be clear in your answers.

3. Awareness

The key to a company’s survival and prosperity is to know the landscape of risk around it. 

Boards are always at the forefront of this effort, not just because they are in a position of responsibility, but because they are usually in their roles thanks to years, if not decades, of significant, relevant experience. 

With this experience comes the ability to pinpoint as many risks as possible, whether large or small, short or long term. 

Of course, no company can eliminate risk and should never approach risk management this way. The real trick is deciding which risks to take and which to avoid. You can read more about it in our guide to risk here.

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4. Impartiality

Boards must strike a careful balance between their various responsibilities, the people who answer to them, and the people they answer to. 

They should approach every decision with an independent mindset, ensuring no personal interests or those of close colleagues come between them and the correct business decision. 

While impartiality is easy to agree to in principle, it’s easy to slip out of practice. Personal beliefs and friendships can cloud a board member’s objectivity. A board must know how this can happen – and how subtle it can be. They should take care to ensure it doesn’t influence their responsibility.

5. Transparency

This is the most practical principle, and it’s simply about the paperwork. Boards are responsible for documenting and reporting on everything that’s expected of them as clearly and thoroughly as is necessary. 

Don’t be fooled into thinking this is just about the financial statements. They are essential, but they’re not the whole picture. Boards must also report any conflicts of interest, severe conflicts over strategy and risks to the company.

In summary

Take the above five points as a foundation or starting point. You can build on them with information from your role. Every board in every industry is different, but these will set you on the right path.

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Davos 2023: Better Corporate Governance Can Save The World

Davos was established in 1971 in Geneva (Switzerland) and in its first year, 444 executives from European companies met to discuss corporate governance.

Corporate governance was also the main talking point at this year’s event. The thousands who came together online for Davos 2023 discussed the vital relationship between good corporate governance and our collective, future wellbeing.

Traditional corporate governance needs to change

The 51st edition of the World Economic Forum (World Economic Forum, WEF) met online in late January 2023.

Over one week, politicians, business people and representatives of social and cultural organisations discussed this crucial time for the world.

Of those who spoke on corporate governance, all agreed – it is time for the aged, 20th Century way of doing things to be discarded.

Corporate governance has to be refocused. Board members and company directors must now take individual responsibility and be held accountable for their actions.

A new corporate governance framework

The topic of inclusive economies was explored, and a corporate governance framework was proposed that refocus boards, management teams, and investment communities on long-term value creation.

In other words, the planet and its people must come before profits.

Another key theme was that governments could not address global risk drivers as effectively as corporations and NGOs do.

The biggest risk drivers of the early 21st Century global economy are:

Wealth inequality and polarisation

Climate change

Viral pandemics

Technological change

Lack of global cooperation

Wealth inequality threatens humanity’s survival

The people of the world are currently living through unprecedented and disruptive times. The pandemic has disrupted our ‘normal’ lives and has caused us to reflect on the enormous inequalities most people face on this planet.

We need to change the old ways of doing things and focus on what’s coming down the line.

For example, without the appropriate re-skilling of workers and proper governance, technology will destroy jobs faster than it can create them.

Governments can no longer provide historical levels of social protection. An anti-establishment narrative has gained traction.

Populist political leaders blame globalisation for society’s challenges. This creates a vicious cycle in which lower economic growth only amplifies inequality.

Cooperation is essential to prevent further economic and social deterioration and social unrest.

The business sector, the private sector, and global governments must work together to tackle social instability.

The future of work involves stakeholder capitalism

At Davos 2023, the World Economic Forum proposed a universal set of ESG indicators.

The WEF discussed how investors and governments might work together to promote stakeholder capitalism.

Keynote speakers and what they said

The following are some of the headline points made by keynote speakers at Davos 2023.

Klaus Schwab, the founder and the executive chairman of the World Economic Forum

In 2023, global business philosophy will undergo a shift from shareholder capitalism to stakeholder capitalism.

Revitalising trust is essential for reviving the global economy and re-establishing links between businesses, investors, communities, and governments.

Investors with ESG criteria control more than a trillion USD.

No one will be safe until everyone is vaccinated.

In the past, capitalism usually meant financial capital, but now it increasingly means human and environmental riches.

The WEF wants to create a universal system for ESG-based assessment and reporting.

Ilham Kadri, CEO, chairman of Solvay SA’s executive committee

ESG metrics will soon become more important in business reporting and even more important than financial performance reports.

Sustainable development performance has already become the main factor of market value for a business.

Mohammad Abdullah Al Gergawi, Minister of Cabinet Affairs and Future, the United Arab Emirates

Every country’s government must be concerned with achieving a balance between public health, economics, and social development.

The pandemic challenges us all, and we should make global decisions together. For instance, we should not only vaccinate our citizens but ensure that everyone else is also vaccinated.

The old management model has failed and will not return.

Vaccination diplomacy will be a new theme in international relations in the future.

Gillian R. Tett. editor, the Financial Times

People who claimed this was the end of sustainable development or climate change were wrong.

Corporate media and newsfeeds from corporations are sometimes trusted more than traditional media.

Businesses are actively involved in discovering, producing and distributing the vaccine. Governments did not save us from the pandemic.

The measure of a corporation’s strength isn’t merely how much it earns, but what it does for society.

Kristalina Georgieva, managing director of the International Monetary Fund

2024 will be the year of battles between the mutating virus and vaccines.

We need more global cooperation from all sectors to help the vaccine win this battle.

No country’s economy can recover if international cooperation is not re-established.

The gap between rich and developing countries is widening.

Laurence D. Fink, chief executive officer of investment firm BlackRock Inc.

Investors today assess projects based on environmental, social, and governance criteria.

The world needs to invest 50 trillion USD to achieve zero CO2 emissions by 2050.

While those ‘attending’ Davos 2023 discussed many weighty topics, the overriding theme was the role good corporate governance can play to protect the planet, to enrich peoples’ lives and to focus on sustainable profits rather than empty, one dimensional GDP metrics.

What Are The Benefits Of Mobile Banking?

Mobile banking is a type of direct banking service that can be accessed 24 hours a day, 7 days a week via the Internet from a cell phone (feature phone). It can be accessed through the official menu of cell phones (service providers), which makes it easy to use various services from your cell phone.

Direct banking is a service that allows you to perform various operations, procedures, and consultations by phone or via the Internet, without having to visit a branch of a financial institution.

In general, to use mobile banking, you need to log in by entering your subscriber number (account number), password, etc. After successfully logging in, you will be taken to a “special page for each subscriber,” where you can use various services (you must apply for them).

These services include balance inquiries, statement requests for deposits and withdrawals, transfers, deposit transactions, mutual fund transactions, loan applications and repayments, cash card settings, changing customer information, and more (services depend on the financial institution and are not available on all phones). Smartphones are often included in online banking and can be used through a special smartphone screen or smartphone app.

Prospects for the development of mobile banks

Apps that solve traditional banking issues are no longer enough for customers. Insurance, investment products, ordering everyday items, and digital cards – these and more can make your app stand out from the rest.

Also read: No Plan? Sitting Ideal…No Problem! 50+ Cool Websites To Visit

How mobile banking works

In general, mobile banking requires a connection to the global network, less frequently, transactions are carried out via SMS command codes. Transactions can be accessed through separate phone notifications or special mobile applications. Also, in some cases, an Internet browser is required.

Modern banking institutions even have their mobile service applications. They are developed for various mobile platforms: Android, Windows Phone, IOS, etc. Mobile banking applications for smartphones are essentially a simplified version of Internet banking.

You can sign up for this service at any branch of your bank. Often, mobile banking is part of the “free” package for your card account.

Benefits of mobile banking:

Also read: 11 best ways to Improve Personal Development and Self-Growth and its Benefit on our Life

The biggest plus of such a service: saving the client’s time.

You can carry out transactions at any time convenient for you 24 hours a day. All you need for this is a mobile device, and nowadays almost all of us use our phones every day.

Accessibility

Everyone has a mobile phone, we have already talked about this. Mobile phone networks are present even in the most remote corners of Russia and the world. This means that a person can use the mobile bank in any environment, wherever he or she is, and at any time of the day or night.

Saving money

Also read: Best 10 Email Marketing Tools in 2023

The more you know, the better you sleep

Customers use mobile banks also for the reason that they can always monitor the movement of funds in their accounts, keep track of their safety and use information services. On the one hand, it is much easier to make banking transactions with a mobile phone, on the other hand, not a single penny is lost from your account without you knowing where it went and for what reason.

Introducing Gofungibles’ Community Governance In The World Of Crypto

OkDecentralization and Web 3.0 are hot topics in the world right now.

A byproduct of blockchain technology is the emerging world of Web 3.0. The idea behind Web 3.0 is that users on the internet will interact with each other and data will be stored in a decentralized way, giving users data privacy and sovereignty. This is different from Web 2.0, where most of the activity on the internet is composed of users interacting with each other and data stored in centralized storage locations that are controlled by large companies. These companies also profit off of the data. 

Most users would prefer to have their data private, or for that matter profit off of the sales of their own data. If that is the case, why have most of us opted into major Web 2.0 platforms that store our data?

One major reason is that data storage was not broadly considered during the rise of Web 2.0. This came to light recently. But even so, and even with distrust and issues with centralized platforms, most users opt-in to receive the best user experience. 

This could mean better ease of use, or better access to content. For creators, there is a connection to a potentially large community. These are the pain points that centralized platforms resolve. 

Decentralized services can solve these pain points with the blockchain instead of a potentially arbitrary central decision point. The problem is one of the errors in governance. 

When a decentralized system does not have a predetermined method of governance to deal with a situation, things can go haywire and need to be solved with a potentially arbitrary central decision point. 

In the history of cryptocurrency, this has happened. No resolution for two conflicting ideas has resulted in “hard forks” with two cryptocurrencies emerging. Ethereum and Ethereum Classic in 2024 and Bitcoin and Bitcoin Cash in 2023 are some of the most famous examples. For Bitcoin Cash, this was followed by a fork that created Bitcoin Cash and Bitcoin SV in 2023.

What is needed is a sensible decentralized governance mode to address any eventuality. 

GoFungibles Tackles Governance

GoFungibles is an upcoming NFT marketplace that features a play-to-earn mobile game and is built using the Polygon side-chain solution. This allows it to access the Ethereum network with lower gas fees when minting NFTs.

GoFungibles also bridges NFTs and decentralized finance together with staking and yield farming powered by its utility and governance token, $GFTS.

Here is how governance works in GoFungibles.

Once launched, the GoFungibles team roadmap includes creating a DAO, or Decentralized Autonomous Organization. A DAO exists to create or remodel services on the platform and is run by the community without a centralized authority. It is also fully transparent and every vote appears on the blockchain.

In addition to other benefits such as yield farming, and other financial value and/or utility on the GoFungibles platform, the token is also a governance token.

$GFTS token holders that stake their tokens are the eligible voters in this community. The number of votes is proportional to the amount of staked tokens. Those with the greatest interest in the benefit of the platform are also granted the greatest influence, creating a win-win for the community as a whole. 

For example, User A has X number of staked tokens. User B has a 2X number of staked tokens. User C has a 1.5X number of staked tokens. User A would get 1 vote, User B would get 2 votes, and User C would get 1.5 votes. 

As the tokens are staked, this prevents bad actors from being able to make detrimental decisions and then dump the tokens and then secretly exit or “rug pull” the other community members. 

Again, this is a DAO, so the GoFungibles team will not be able to override the decisions of the community and the community is protected against a rug pull from any team members. 

An additional layer of security is built-in with the Polygon framework built on top of Ethereum, the world’s leading application-layer blockchain. 

Bringing a DAO community governance framework to the GoFungibles platform makes it one of the most exciting new projects being built on Polygon and Ethereum. 

Contact

Contact the GoFungibles team across social media and the web here:

What Are The Techniques For Monitoring Of Accounts Receivables?

For a business to continue running with granting credit, it must continuously monitor the accounts receivables so that there is no laxity in the process of credit collection. There are two traditional methods that are used to monitor accounts receivables. These are

Average Collection Period

Aging Schedule.

As these methods have some limitations, analysts now use the collection experience matrix method to judge the accounts receivables efficiency of a firm.

Average Collection Period (ACP)

The Average Collection Period Formula (ACP) is –

$$mathrm{ACP := :frac{Debtors :times :360}{Credit : sales}}$$

The average collection period calculated with this formula is compared with the real collection period of the firm to adjudge the efficiency of the firm in the collection of the dues.

For example, if ACP calculated with the formula is 30 days and the firm collects the dues in 45 days in reality then there is a mismatch and thereby a lack of efficiency in the firm’s credit collection method.

An extended credit period consumes cash inflows, impairs the liquidity of the firm, and increases the possibilities of bad debts. That is why a lax system is inefficient in collecting the dues from the borrowing firms.

Limitations

The first limitation of the two that this method has is that it offers only an average picture of the collecting experience and it is based on aggregate data. For control, the age of outstanding variables is needed.

The second shortcoming is that it is susceptible to sales variables and the periods on which these variables are aggregated. Thus, ACP fails to provide a meaningful account of the effective collection of accounts receivables.

Aging Schedule

The aging schedule breaks down the data of receivables in sync with the outstanding period for which they have been outstanding. This helps one to get a more meaningful view of actual accounts receivable information related to a given firm.

For example, if the stated credit period of a firm is 30 days and accounts show that 50 percent of this remains outstanding beyond this period, a significant amount of credit remains uncollected beyond the actual credit period.

Thereby, an aging schedule helps to get a more meaningful insight into the collection experience and is better in determining whether the firm is lax in collecting the dues from the borrowers.

The aging schedule however faces the problem of aggregation like the ACP method.

Collection Experience Matrix

As mentioned above, the major two shortcomings of the methods of monitoring accounts receivables are that they are based on aggregates and they fail to relate to the period of outstanding receivables with the actual period of credits outstanding. Thus, two types of outcomes can be ascertained using the same variables and sales data differently.

Using disaggregated data for analyzing collection experiences can get rid of the problem stated above. The key here should be the linking of variables with the sales data of the same period. When the sales are shown horizontally and associated receivables vertically in a table, a certain matrix is obtained. This is known as the collection experience matrix and it can be used to a great extent to monitor the accounts receivables.

Conclusion

The three methods of monitoring accounts receivables can help lenders determine whether their collection efforts are bearing fruit or they are running in the wrong direction.

Among the three, the collection experience matrix is the best to adjudge the receivables. It removes the drawbacks that are found in the ACP and aging schedule methods to offer a complete and more meaningful insight into the process of monitoring the accounts receivables. Constructing a collection experience matrix should therefore be the aim to adjudge the monitoring of accounts receivables.

What Are The Chances Of Laptop Catching On A Fire?

Are you scared of your laptop catching on Fire? This article is not meant to scare you but, there are slight chances of your laptop catching on Fire if used recklessly.

But, like every electrical equipment, there is always risk associated with electrical Fire.

Due to the coronavirus pandemic, the working module has shifted to working from home, which has increased your laptop workload.

So, you must maintain caution while using a laptop.

The chances of a laptop catching on Fire are low, but not none. A laptop can catch on Fire due to damaged fans, malfunctioning laptop batteries, overheating, prolonged charging, etc.  However, simple maintenance and safety practices can greatly reduce computer Fire hazards.

So, what causes the laptop to catch Fire?  What can be done in case of such incidents?

This article has got you covered. Read on to discover the causes and ways to prevent the laptop from catching Fire.

After all, some simple measures can prevent serious casualties and the destruction of property.

Possible Causes for Laptops Catching on Fire

An electrical Fire caused by a laptop can be extremely dangerous. It can lead to serious injuries or casualties.

There have been instances of laptop Fire, causing the entire House to burn down. Here are some of the main reasons for laptop Fire so that you can prevent them.

1. Ineffective Working of Fans

Damaged or malfunctioning fans are one of the main reasons for laptop overheating, as it causes the laptop components to heat up.

Another reason for laptops causing overheating and eventually laptop Fire is manual changing of the laptop settings.

To have quiet work time, users change their laptop settings to reduce the fan speed, resulting in overheated laptops.

Also, while watching movies, the power management profile for playing DVD movies can reduce fan noise, which causes the laptop to overheat.

If you have problems with the laptop overheating even when the fans are running, you need to reset these settings to lower the risk of overheating.

Laptop fans need the vents open to work properly. If your desk is cluttered or the laptop’s vents are blocked by anything, the fans cannot circulate cool air to keep the laptop cool.

In addition, dust can accumulate in vents and the fan over time, blocking the fan from operating properly or circulating air.

2. Overheating of Laptop

When the lithium-ion cells reach a temperature of 302°F, they become thermally unstable and release flaming gases.

Many of us habitually leave laptops on a cushion or pillow. But unfortunately, this is a very high-risk fire hazard.

Placement on soft unstable surfaces also blocks air inflow toward the laptop fan or vent. The blockage can also overheat the laptops.

Thermal paste transfers heat from the CPU and GPU to the heat sink, cooling the laptop.

Unfortunately, thermal paste deteriorates and becomes useless with time. Most thermal paste lasts four-year before it starts to lose its effectiveness.

The degradation causes the CPU and GPU to accumulate heat, and the laptop becomes overheated.

In addition, dust can build up inside laptop vents over time. It can stop airflow if it is not cleaned from time to time.

All of the mentioned reasons would lead to overheated laptops, significantly raising the risk of catching Fire.

You can use a lap desk like LapGear Designer Lap Desk, which provides comfort to your legs and a stable surface for your laptop. 

Signs of Laptop Overheating

Unlike many Personal Computers, the components of a laptop are close together, leaving little room for air to circulate.

Since laptops are prone to overheating, keeping an eye out for indicators of thermal stress and preventing the fans from becoming clogged protects your system from irreversible harm.

Here are some signs of overheating so that you can prevent the laptop from burning down your room.

The fan is always on and makes loud buzzing noises.

The system crashes or displays a blue screen of death (BSOD).

The laptop shuts down unexpectedly on its own.

The laptop has trouble doing simple things like starting a new web browser.

Lines emerge on your laptop screen.

Unintended Error notifications.

Heated laptop’s bottom components, such as the fan, RAM, CPU, and battery.

Stop Laptops from Overheating

You can save laptops from overheating if you are cautious about a few things like those mentioned below.

Check the laptop vents for dust accumulation and the fans from time to time.

You can use Compressed Air 3.0- Multi-Use Electric Air Duster to blow out the dust in your laptop fans.

If you do not want to use compressed air for dusting your Laptop then read on to find out other alternative ways to clean your Laptops without compressed air.

Use your laptop on firm, flat surfaces like a table or the floor at all times.

Never close the laptop’s air vents.

Use a lap desk to elevate your laptop, so the airflow from beneath is not obstructed.

Lower fan speed can cause your laptop to overheat quickly. Use SpeedFan for Windows to control the fan speed.

Read more to learn about amazing Laptop stand benefits.

3. Malfunctioning of Laptop Batteries

Malfunctioning of Laptop batteries can cause extreme overheating. Overheating can lead to increased chances of Fire.

Most laptops use Lithium-ion batteries for operation. However, these batteries are susceptible and can cause overheating problems when over or undercharged.

You must charge the battery with maximum voltage to store more energy. However, excessive voltage can harm Lithium-ion batteries and damage them permanently.

Caution should be maintained even while discharging the battery as frequent discharges at low voltage can lead to loss of its capacity.

For instance, HP had received eight complaints of batteries overheating, melting, or charring in 2023, as per the Consumer Product Safety Commission.

In addition, CPSC reported 300 Lithium-ion batteries overheating and catching Fire between 2003 and 2005 in the United States.

It appears that a dormant laptop in sleep mode poses a lower risk of Fire than one in use. However, the battery is most likely to overheat if there is a faulty laptop battery.

The laptop batteries can have built-up gas and heat over time due to decay or physical damage to the battery components.

If you leave a swollen lithium-ion battery in your laptop, it can be extremely dangerous. It may be ruptured, allowing dangerous gases to escape.

The gases can cause the battery to explode and catch Fire.

4. Prolonged Charging

Computers are built to be used while charging and automatically shut down if the system overheats.

Meanwhile, laptops are not built for this purpose as they have extra battery life. In addition, overheating would damage the components and the fan.

When the fan is damaged, the laptop can overheat, causing an increased Fire risk.

While there is a low Fire risk due to prolonged charging of laptops, the risk is increased if left on charge for long durations over flammable materials like mattresses, cushions, or couches.

The heat may get trapped inside the laptop due to prolonged charging and damaging components like the CPU.

There has been a reported incident in Llanfawr Close, Holyhead, where leaving the laptop on charge overnight on a couch burned down the entire couch.

However, there are meager chances of an unplugged Laptop catching on Fire.

Therefore, be on the safe side and unplug your laptop while sleeping. If necessary, charge the laptop over a hard surface like a desk with unblocked airways.

5. Thermal Runaway of Laptop Batteries

According to research, laptop batteries can explode or release a jet flame during thermal runaway. The explosion can also cause the laptop to catch Fire.

When the Lithium-ion battery is exposed to high heat or short circuit, exothermic reactions can occur, which triggers a self-increasing temperature loop called thermal runaway which can cause batteries to explode.

The lithium-ion battery’s thermal runaway sets off an uncontrolled chain reaction. Within milliseconds, the temperature increases rapidly, releasing the energy held in the battery.

As a result, temperatures of roughly 400°C are generated, the battery becomes gaseous, and a Fire breaks out that is difficult to put out.

Thermal runaway is a concern that begins at 60°C and gets exceedingly dangerous at 100°C.

If the laptop has a defect, it causes the battery to generate more heat than it can tolerate; this might result in an explosion.

In addition, excessive storage temperatures above 60 degrees Celsius, overcharging, manufacturer faults, and product manipulation can harm lithium-ion batteries.

An explosion might occur when a battery is overheated to the point that it ruptures rather than burns.

The risk of the battery exploding increases if it is exposed to a spark. The cobalt oxide in the battery might be to blame for most of the thermal runaway.

6. Burning of Cables

To charge and work, You must plug laptops and desktop computers into a power outlet.

Unfortunately, these power lines can overheat for many reasons, including wear and tear.

In addition, cords may catch Fire if used in this scenario for an extended time.

Overheating in laptops is mostly caused by production flaws, yet the products are rarely recalled for faulty cables.

You might use extension cables when working in an office or sharing a charging port. This is because overlading the extension cables might lead to a Fire.

Normally, extension cables can withstand a load of around 3,500 watts.

Related Article: Can you plug power strip into surge protector?

7. External Environment Might cause Laptops to Overheat

The external environment can also cause laptop Fire like high temperatures. Therefore, you should use laptops at temperatures between 50 and 95 degrees Fahrenheit.

Using a laptop or charging it under blankets or in a room with no ventilation interferes with the laptop’s air circulation through vents and overheats it.

Read more: Can you use laptop in the sun?

Are Laptop Battery Chargers a Fire Hazard? 

Laptop chargers are not a Fire hazard if they are original and have no defects.

However, you might be tempted to use a cheap charger for temporary purposes, which might charge your laptop but poses a great Fire hazard.

They might not explode or burst into flames but can produce electrical sparks.

A tiny spark would be enough to burn down your home if any flammable items are near it when charging.

For instance, a laptop left charging on the bed burnt down the whole room due to a spark produced by a laptop charger in King’s Heath.

Such sparks occur because the fuse fitted into the charger plug might be counterfeit.

In original chargers, Silica sand is meant to fill fuses. However, duplicate chargers have empty fuses, which increases Fire risk.

Using a faulty laptop battery or charger can also cause extreme overheating.

Wrong types of chargers charge the laptop at different voltages than required, which causes the laptop to explode.

Check the laptop specification for voltage and current requirements and match the charger to the specifications before charging.

Another Fire risk caused by chargers is physical damage to the chargers. Signs of damaged chargers are burnt marks around the on, managed charge pin, or torn wires.

The damaged charger might charge your laptop just fine, but a small spark can cause serious Fire hazards, so you should replace the harder if such signs are present.

Can a Dead Laptop Battery Explode?

You wouldn’t think that a dead laptop battery can cause any harm, but the reality is different. Even dead laptop batteries can explode if mishandled.

It means charging, using, dropping, or keeping the battery in a heated area.

The risk is significantly high if the laptop battery is swollen. Laptop batteries can swell over time due to heat and gas accumulation.

You should be careful not to rupture the battery as it can release harmful gases that are toxic to breathe.

How Hot is too Hot for Laptops?

Laptops operate at a normal temperature of  30-65 °C for general usage. However, the maximum tolerable limit varies according to the processors used.

For instance, Intel Core i7 operates at an average temperature of 50-65 °C, while AMD Athlon has 85-95 °C.

Refer to the table below for temperature ranges and their effects on laptops.

TemperatureStateResult

30-65 °CNormal temperature in General UsageNormal Operation

70°CSlightly high but tolerable temperature in general usage.Normal Operation

70-90°CNormal temperature while gaming and heavy usage.Normal Operation

GPU starts throttling.

Over tolerance LimitStarts thermal runaway

220 – 687 °CExtremely overheatedExothermic reaction

Possibility of laptop explosion.

What to do if your Laptop Catches Fire?

Even if we know all the causes of an electrical Fire starting from the laptop, there might still be incidents, and it’s better to be prepared to prevent catastrophes.

If your laptop happens to catch on Fire, stay calm and follow these steps to be safe.

To begin, unplug the laptop as it stops the electricity from causing more sparks.

Move flammable items like papers, blankets, and cushions away from Fire.

If the Fire is still small, the next measure would be to move the device outside. Moving outside allows the fumes to escape and protects the laptop from catching Fire and destroying the House or belongings.

Pour baking soda over the flames after unplugging the power source. Baking soda includes sodium bicarbonate, a chemical component typically found in Class C Fire extinguishers.

A Fire blanket is an excellent alternative if you don’t have a Fire extinguisher or baking soda.

If your electricity is still on, never use water to put out any size of an electrical fire.

Call 911 and then get everyone out of the House, including pets.

How to Prevent Laptops from Catching a Fire?

Even if you know all the measures, it’s better to be safe than sorry.

Use necessary measures for placing laptop, using it and the necessary equipment to prevent Fire. Then, follow the after-mentioned tips for safety.

Use an air conditioner in the room where you keep your laptop.

You should not store objects on top of your laptop.

Clean your laptop once a year.

If your fan is operating while the laptop overheats, pause for a moment to allow the laptop to cool down.

You should not place laptops inside the bag while it is on.

When the laptop is fully charged, disconnect it from the power source.

Use only chargers that are compatible with your device.

Instead of using duplicate adaptors, utilize power boards with overload protection while charging several devices simultaneously.

Purchase a laptop chilling pad or cooler.

Check the laptop’s air vents now and again to see if any dust or dirt restricts the airflow.

If the power cord is broken, you should replace your lithium-ion batteries after two to three years of use. The aged components continue to degrade and may begin to produce more thermal runaways.

Avoid storing, using, or charging batteries in extreme heat or cold.

You should protect batteries from harm like crushing, rupturing or submerging in water.

When traveling, avoid storing all of your lithium-ion battery-containing devices together, particularly on a flight.

Do not place your laptop closer to other equipment like printers. Any electrical type of equipment can cause electrical fire due to malfunctioning cables, components, etc.

Some Reported News of Laptop Catching Fire

Laptop Fire have occurred in various ways over the years.

A laptop caused a house Fire in Wrightsville, York County, while the plastic cabinet was left in charge.

Fortunately, there were no casualties, but such incidents could lead to injuries and property loss. For detailed news, read this news article.

Herald Sun reports the incident of a young family that lost everything they had in March 2024, when their overheating laptop burned down their home in Melbourne’s east.

UCLA reports an incident of a Dell laptop in the Family’s living room,  bursting into flames following an explosion.

The Dell laptop’s lithium-ion battery has reportedly caused the Fire. Dell recalled 4.1 million laptop batteries in 2006 due to a Fire hazard.

According to Austin Fire Department, A Fire broke out at an apartment in northwest Austin on 4th November 2023 in the morning, displacing one individual.

The source of the incident, according to investigators, was a laptop that was charging and caught Fire.

A sprinkler put out the Fire, but not before it had caused $8,000 in damage. For full news coverage, read this news article.

Albert and Logan News reported an incident of a House Fire in 2023. The tenants of a Logan residence believed their laptop may have started the Fire.

Following a home Fire in Orpington on 1st November 2023, the London Fire Brigade (LFB) has warned about lithium-ion batteries hazards.

The Fire destroyed much of the first floor and a portion of the semi-detached House’s exterior.

Final Verdict

Aside from manufacturing errors, the causes of laptop Fire are preventable through simple steps like using over a hard surface, unplugging when charged, using original chargers, etc.

Even when we maintain all the precautions, some errors will likely occur. In such situations, the use of Fire control methods can prevent the Fire from escalating.

We use laptops for work, personal use, study, gaming, etc., for so many purposes that using a laptop is almost a part of our daily routine.

The risk of Fire associated with laptops is low. However, the harm it could cause is tremendous.

Laptops do not catch Fire on their own; it is generally due to malfunctions like damaged batteries and fans or human errors like charging over flammable items and overcharging.

Overall, you do not have to fear your laptop bursting into flames but follow safety precautions to prevent the catastrophe.

Read more: Is it possible for desk lamp to catch on Fire?

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